Table of Contents
Executive Summary
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- Overview
- One third of online shoppers are “packaging conscious”
- Packaging concerns hinder online sales growth
- Online shoppers have three areas of concern with ecommerce packaging
- Packaging integrity: Protect the product and the brand
- Environmental impact: Less can be more
- Appearance: It’s what’s on the inside that matters
- What it means
The Market – What You Need to Know
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- Online sales growth puts packaging in the spotlight
- More than one third consider delivery packaging when shopping online
- Half indicate a preference for the appearance of external packaging
Market Drivers
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- As ecommerce grows, so too does the need for packaging innovation
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- Figure 1: Total US online retail sales and fan chart forecast with best- and worst-case scenarios, at current prices, 2013-23
- Consumer groups with increasing spending power drive online sales growth
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- Figure 2: Change in online shopping compared to last year, by generation and Hispanic origin, November 2018
- Online shopping expands across nearly all product categories
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- Figure 3: How consumers buy products (by category) – Any online, November 2018
Market Factors
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- Shoppers who have increased online purchasing are more engaged in packaging
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- Figure 4: Impact of packaging, by change in online shopping compared to last year, November 2018
- Active online shoppers are more likely to be packaging conscious
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- Figure 5: Packaging conscious online shoppers, by key demographics, November 2018
- Packaging conscious shoppers consider how external packaging looks
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- Figure 6: Online order packaging preferences, by impact of packaging, November 2018
Key Trends – What You Need to Know
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- eCommerce-specific packaging and products draw attention
- Reusable packaging startups and pilot programs set in motion
- Don’t become a #PackagingFail
- Amazon incentivizes retailers to pack better
- Efficient packaging to become the standard – not the exception
Who’s Innovating
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- P&G and Unilever roll out ecommerce-specific pack designs
- P&G: Tide Eco-Box
- P&G: Air Assist liquid packaging technology
- Unilever
- LimeLoop, RePack, Returnity compete to be the reusable package partner of choice
What’s Working
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- Seasonal packaging generates social media buzz
- It’s what’s on the inside that counts
- Mobile-friendly hero images
What’s Struggling
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- Damaged orders due to rough handling
- Branded shippers present a security concern
- When retailers get it wrong: #PackagingFail
- Packaging concerns hinder online grocery growth
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- Figure 7: Impact of packaging on online food and drink purchasing, by online shopping frequency, November 2018
What’s Next
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- Integrity: Amazon helps brands to adopt Frustration-Free Packaging
- Specialization: More ecommerce-specific packaging
- Sustainability: Greater emphasis on recycled and reusable materials
- Reusable shipper startups race to gain a foothold in apparel
- Major CPG brands sign up to participate in recyclable container program
- Informative: Retailers will include more detailed packaging content on their websites
The Consumer – What You Need to Know
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- Package type, size are most important considerations
- Packaging concerns hinder online sales growth
- One bad packaging experience is enough to lose future business
- Show packaging materials, methods used to keep products safe
- Reduce waste, offer recyclable/reusable packaging materials
- Use standout packaging to appeal to younger online shoppers
Packaging Considerations
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- Packaging needs to fit the product – not the other way around
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- Figure 8: Packaging considerations, November 2018
- Packaging conscious shoppers pay more attention to the details
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- Figure 9: Packaging considerations – Type and appearance (important), by impact of packaging, November 2018
Important Packaging Characteristics
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- Focus first on packaging integrity, then environmental and cosmetic enhancements
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- Figure 10: Important packaging characteristics, November 2018
- Packaging integrity: Quality matters more to iGens
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- Figure 11: Important packaging characteristics – Packaging integrity, by generation, November 2018
- Environmental: Reduce packaging waste to appeal to more women
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- Figure 12: Important packaging characteristics - Environmental, by gender, November 2018
- Enhanced packaging appeals more to packaging conscious shoppers
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- Figure 13: Important packaging characteristics, by impact of packaging, November 2018
Packaging Preferences
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- Plain shippers preferred (for now)
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- Figure 14: Packaging preferences, by impact of packaging, November 2018
- iGens are nearly as likely to prefer branded as unbranded shippers
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- Figure 15: Packaging preferences, by generation, November 2018
Desired Information and Areas of Improvement
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- Provide more detailed packaging information
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- Figure 16: Packaging information online shoppers want, by impact of packaging, November 2018
- Demonstrate environmental commitment
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- Figure 17: Environmental actions and preferences, by impact of packaging, November 2018
- Enhance the visual experience during ordering and after shipping
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- Figure 18: Visual areas of improvement, by impact of packaging, November 2018
How Packaging Impacts Online Purchasing Decisions
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- Bad packaging can be enough to turn away a customer
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- Figure 19: Impact of packaging on online purchasing decisions, by impact of packaging, November 2018
- Grocery, electronics, furniture retailers have an opportunity to provide more information
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- Figure 20: Packaging impact on online purchasing decisions, by product category, November 2018
When Things Go Wrong
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- Seven in 10 have experienced packaging issues
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- Figure 21: Issues with online order packaging, by impact of packaging, November 2018
- Carriers get blamed for damage, retailers expected to foot the bill
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- Figure 22: Who’s to blame when a package arrives damaged, by impact of packaging, November 2018
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- Figure 23: Refund expectations when an online order arrives damaged, by impact of packaging, November 2018
Attitudes toward Return Packaging
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- Return packaging is nice to have, but not a deal breaker
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- Figure 24: Attitudes toward return packaging, by impact of packaging, November 2018
- Return packaging presents an cost saving (or upselling) opportunity
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- Figure 25: Attitudes toward financial incentives around return packaging, by impact of packaging, November 2018
- Younger online shoppers will pay more for inclusion of return packaging
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- Figure 26: Willingness to pay for return packaging, by generation, November 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 27: Total US online retail sales and forecast, at current prices, 2013-23
- Figure 28: Total US online retail sales and forecast, at inflation-adjusted prices, 2013-23
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